In a landmark step toward comprehensive AI governance, South Korea’s National Assembly has introduced the AI Basic Act, consolidating nineteen separate AI-related proposals into a unified framework. This legislation, developed between May and November 2024, is seen as a pivotal effort to position South Korea as a leader in both AI regulation and innovation. The Science, Technology, Information, Broadcasting, and Communications Committee spearheaded the drafting of this alternative bill, with its principles mirroring key themes found in the EU AI Act.
The South Korean AI Basic Act establishes foundational rules for AI governance, combining regulatory oversight with measures to boost innovation and competitiveness. It includes provisions for ethical AI usage, transparency, risk management, and the creation of institutional bodies for oversight and policy guidance.
- Purpose and Scope: Article 1 of the AI Basic Act aligns with the EU AI Act’s emphasis on safeguarding fundamental rights and promoting societal benefit. South Korea highlights the protection of “rights and dignity” while fostering a “trust-based foundation” for AI development.
- High-Risk or High-Impact AI: Similar to the EU AI Act’s classification of “high-risk” systems, the Korean bill introduces “high-impact AI” (Article 2.4). These include applications affecting critical sectors like healthcare, public safety, and biometric data analysis—echoing the EU’s Annex III categories.
- Transparency and Labeling: The bill mandates clear labeling of generative AI outputs and synthetic media (Article 31), a provision closely resembling the EU’s Article 52 on AI transparency. Both laws aim to mitigate public deception by requiring notification when users interact with AI systems.
- Risk Management: The Korean AI Act mirrors the EU AI Act’s rigorous risk management obligations (Articles 9-15). South Korea’s Article 32 requires AI businesses to conduct risk assessments and implement mitigation measures for high-impact AI systems. Additionally, Article 35 encourages “influence assessments” to evaluate impacts on fundamental rights, similar to the EU’s conformity assessment processes.
- Governance and Oversight: South Korea’s centralized governance model establishes a National AI Committee (Article 7) to oversee AI policies at the presidential level. Complementary bodies like the AI Policy Center and the AI Safety Research Institute will provide technical guidance and ensure compliance—paralleling the EU’s AI Board and national competent authorities.
Where the South Korean AI Act diverges from the EU model is its explicit focus on industrial development and competitiveness. Articles 16 to 23 outline support for AI clusters, workforce training, and international cooperation. This integration of innovation policies within the regulatory framework distinguishes Korea’s approach, as the EU largely addresses such initiatives through separate funding programs like Horizon Europe.
Both the EU and Korean frameworks emphasize the ethical development of AI. Article 27 of the Korean bill mandates the creation of AI Ethics Principles, codifying safety, reliability, and human dignity at a statutory level. While the EU AI Act relies on existing human rights laws like the GDPR, Korea’s explicit reference to ethics marks a notable difference.
The enforcement mechanisms in both laws are robust but vary in severity. The EU AI Act imposes fines of up to 6% of global turnover for non-compliance, whereas South Korea’s penalties include imprisonment of up to three years and fines up to 30 million won (approximately $23,000 USD). Both laws empower authorities to conduct investigations and impose corrective measures.
The bill, which now awaits approval from the Judiciary Committee and a final plenary session, reflects South Korea’s commitment to balancing the promotion of AI development with the protection of citizens’ rights, safety, and ethical standards.
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